In an instrumental variable regression model with one regres
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In an instrumental variable regression model with one regressor, Xi , and two instruments, Z1i and Z2i , the value of th
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In an instrumental variable regression model with one regressor, Xi , and two instruments, Z1i and Z2i , the value of the J-statistic is J = 2.2. a. Does this suggest that E(ui 0 Z1i , Z2i ) ? 0? Explain. b. What steps would you take if the J-statistic was 22.2?
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